Making ends meet can be quite difficult for most people. It is a sad, disheartening fact that most people are living paycheck to paycheck. When an emergency comes their entire world turns upside down and they find themselves in serious trouble financially. They may not be able to go to a bank for a loan. Either the amount is too small to borrow or they do not have any collateral or the credit needed in order to borrow from a banking institution the traditional way. Pawn shops and selling important items can be attempted but you wind up getting ripped off and only receiving a tiny fraction of what the item is really worth. There are other options to consider if you need money and need it fast. Payday loans may be able to help you out until your next payday. In this article we will discuss some of the questions and concerns you may have regarding the payday loans services offered.
What are payday loans?
Payday loans are short term loans made by specialized businesses. These loans are designed to be repaid within two weeks or one month depending on when your payday is. The money can be used for anything and the process of taking out the loan is relatively simple. The amounts will vary depending upon income level. The amount of interest will vary according to the amount of money borrowed. There is no credit check involved and they do not report to a credit agency.
What type of information will they need from me?
Most payday loan companies need a few items from you. The first is an open checking account that has been open for longer than three months. You will need to bring in the most recent bank statement for verification. You will need your most recent paycheck stub and a copy of your identification. Some businesses will want to see a copy of a utility bill to ensure that your address is on file should something go wrong. Some payday loan companies require that your paycheck be direct deposited. You will have to ask in order to be sure.
What happens if I don't have the money to repay the payday loans?
That would be a big "uh oh" because they want their money back. The most feasible solution, and one used most often, is to take out the money loan again before you attempt to pay bills. Some people find they cannot afford to pay back the entire loan so they simply borrow again, but at this time a lower amount of money. This gradually pays down the loan until they can finish paying it off. The big problem comes when you do not have enough cash to pick up the loan note and take it out again. If this is your situation you will need to talk to the loan company immediately. Some may be able to work out a deal with you to pay another week's interest until you get the money you need.
Will they check my credit?
One of the benefits of using a payday loans company, besides getting the cash you need immediately, is that they do not run a credit check to determine your eligibility. Their main consumer markets are those individuals who could not obtain a short term loan from a bank or do not have credit cards.
What if my banking account is overdrawn?
Most payday loan companies understand that this may be the reason you are in such dire need to borrow money. But…there are some loan companies, especially online, that frown on being overdrawn because it makes them doubt whether or not you will be able to repay the amount of money you are borrowing. You will have to check the payday loan company's policy on being overdrawn.
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